XRP, which is ranked seventh among cryptocurrencies, reached an important milestone in decentralized finance (DeFi). A major XRP Ledger navigator, XRPscan, says that more than 10 million XRP have been pooled in the XRPL Automated Market Maker (AMM). This accomplishment shows that XRP is being used and adopted more and more in the DeFi field.
Unlike traditional exchanges with fixed order books, automated market makers (AMMs) are decentralized exchanges that use liquidity pools to set the prices of assets using algorithms. By giving out tokens, liquidity sources get paid.
XRP Ledger Advances
Unlike smart contracts, XRPL uses a central limit order book (CLOB) to handle transactions for fungible tokens. This has perks like lower trust requirements and centralized liquidity.
Along with the CLOB, an AMM was added to the procedure in the first quarter of 2024 as part of the XLS-30 standard. The fact that 10 million Ripple token are now locked up in AMM pools shows that people are actively using the XRPL infrastructure.
More XRP available on XRPL’s AMM could bring in more participants, which would encourage new ideas and financial goods in DeFi. In other news, investments in digital assets lost a total of $584 million over the course of two weeks. The majority of this loss was caused by Bitcoin, which lost $630 million.
On the other hand, $0.7 million came into Ripple token, which shows that investors are still interested even though the market as a whole is down.
According to the most recent report, XRP has dropped by 1.47 percent in the last 24 hours, which is in line with general market trends that have been affected by the recent events at Mt. Gox and the insecurity in the macroeconomy.
